October Option Investing – EDC Covered Calls

Believe it or not, the markets confirmed an uptrend last week (dating back to October 4th). Based on the strength of the rally, I also think that the uptrend will be short-lived. With option expiration next Friday, I decided to put a toe back in the water with some small covered call positions using a buy-write.

This resulted in an October option trade with EDC shares at 17.95 and 18.58 calls sold for 0.93.

Update:
EDC shares dropped to 15.00 on October 20th, and my 18.58 calls traded at 0.05. So I bought back the 18.58 calls and sold calls with a $16.00 strike price for 0.35.